No announcement yet.

Group vs Individual Umbrella Insurance?

  • Filter
  • Time
  • Show
Clear All
new posts

  • Group vs Individual Umbrella Insurance?


    My employer is offering Group Umbrella Insurance. Other than the costs being lower than if I were to get an Individual Umbrella Policy and the disadvantage that it's not portable (if I leave the employer or drop below part-time status), are there other pros/cons/differences to be aware of?

    I know that umbrella insurance isn't age/time-sensitive like disability or life insurance, and so even if I were to retire or leave my employer in the future, I could just go back to my homeowner & auto insurance carrier and add umbrella insurance with them correct?

    Also, since this is a carrier outside of one's homeowner/renter's/auto carrier, one would have to double-check and make sure that the underlying coverage limit numbers in each category hit the required minimum limits for the umbrella policy? (I guess that may be another downside-more work to prevent a potential coverage gap).

    Curious to hear people's thoughts, thanks in advance. Stay safe!

  • #2
    Usually the limits are not on each HO or auto, but a specific minimum coverage. We had just auto minimum. Umbrella is cheap, choose the lowest if it has similar coverage.


    • #3


      • #4
        Making sure your auto and homeowners insurance meets the requirements would be the main issue. We have a group umbrella and they provide a detailed list of required underlying coverages- goes on for over a page. Because of differences in language and definitions it was not trivial to get things lined up. Much more than just auto liability, for example. Lots of details about specific risks. Best if you go through the agent for the group policy to make sure you have the correct underlying in place.


        • #5
          Think about insurance in the right way; it's just a contract you pay money for so don't pay for something unless you really like the terms and it'll help you sleep better. Read it all and play with different scenarios to see whether you like what you're paying for. Then compare those terms with the terms of any other policies you think you may want to combine this policy with if you file a claim. The policies may not mix well. One last thought is some insurance companies really HATE paying reasonable claims. A partner at my firm regularly sues insurance companies trying to get out of what they contracted for. If your insurer does this, any savings you thought you made quickly vanish. I know it's hard to rate insurance companies; perhaps someone else here knows some good resources on this topic.


          • #6
            Thanks for the input.

            How is Mercury Insurance for umbrella insurance? Thats the current carrier for home/auto.

            It seems like the main advantage of the employer group policy is the cost. But maybe it can be negated a bit by getting all policies with Mercury, as well as it being portable regardless of my employer.